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MarketWatch reported that Deutsche Bank analysts said that while China’s new pollution guidelines will likely be negative for coal, they may positively impact palladium.
MarketWatch reported that Deutsche Bank analysts said that while China’s new pollution guidelines will likely be negative for coal, they may positively impact palladium.
As quoted in the market news:
Under the plan, China will ban new coal-fired power plants in three key industrialized regions and require, among other things, the replacement of coal-heating furnaces by gas-fired furnaces and the construction of gas-fired co-generation projects, according to analysts at Deutsche Bank.
These measures ‘will go a considerable way towards achieving the targeted consumption reduction’ for coal, they said in a research note.
For palladium, however, risks are ‘skewed to the upside,’ the analysts said.
‘A smaller overall lower vehicle sales growth is likely to be offset by a quicker implementation of emission standards and the replacement of polluting cars,’ the Deutsche Bank analysts said. Palladium is used in catalytic converters, which help control vehicle emissions.